The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.
0506 GMT - Chinese companies may consider boosting non-USD FX holdings to counter risks of yuan weakness, Mizuho Securities Asia's Ken Cheung says in an email. Without the PBOC's grip on EUR/CNY fixings similar to USD/CNY fixings, spot EUR/CNY has extended its rally to an 11-year high, the director of FX Strategy says. Since market participants don't gauge yuan sentiment by referring to EUR/CNY fixings, China's central bank could allow EUR to strengthen further versus CNY to push the yuan lower against a basket of currencies, Cheung says. EUR has the second-largest weight in the CFETS RMB Index at 17.9%, following USD's 18.9% weight, Cheung notes. EUR/CNY is 0.4% higher at 8.4289. (ronnie.harui@wsj.com)
(END) Dow Jones Newswires
April 22, 2025 01:06 ET (05:06 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.